Reversal Patterns

This section gathers both bar patterns and chart patterns that focus on finding reversals, both short-term and long-term.

Reversal patterns are pivotal tools in price action trading, helping traders to identify potential turning points in the market. Here, we explore both bar patterns and chart patterns that help uncover potential reversals, catering to both short-term and long-term trading strategies.

We begin with a simple yet effective price action setup that distills core principles into a simple pattern, providing an accessible starting point for traders. For those interested in specific candlestick patterns, master the Pin Bar with four detailed examples.

Bar patterns take center stage with the Two-Bar Reversal Pattern, ideal for traders seeking quick market shifts, while this Three-Bar Reversal Pattern variant is especially interesting for day trading scenarios. Also, trading consecutive up/down days provides a nuanced approach for reducing risk while capitalizing on short-term trend exhaustion.

Chart patterns are also featured prominently. The Head and Shoulders pattern gets an in-depth treatment, covering its mechanics and trading rules. The 1-2-3 Price Pattern Setup outlines a structured approach to trading reversals, while the Bull Flag pattern is highly effective for capturing swift trend reversals.

Whether you’re navigating bar patterns or classic chart formations, this section equips you with actionable strategies.